Which of the following is characteristic of perfectly competitive markets?
A.) Differentiated products
B.) A large number of firms
C.) Price below marginal cost
D.) Significant barriers to entry
B.) A large number of firms
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Lower interest rates cause the velocity of M1 to
A) turn negative. B) move erratically. C) increase. D) decline.
Interest rates in the loanable funds market vary with respect to
a. your rate of time preference. b. risk. c. expected inflation. d. all of the above. e. both b and c above.
The country of Yokovia does not trade with any other country. Its GDP is $20 billion. Its government collects $2 billion in taxes. Consumption equals $15 billion and investment equals $2 billion. What is public saving in Yokovia, and what is the value of the goods and services purchased by the government of Yokovia?
a. -$2 billion and $1 billion. b. $1 billion and $1 billion. c. -$1 billion and $3 billion. d. -$2 billion and $3 billion.
If the reserve requirement is 20 percent and a new deposit of $10,000 in cash is made by a customer to their checking account, by how much are excess reserves increased?
A. $10,000 B. $8,000 C. $4,000 D. $2,000